Still Nothing to do

Blog meant for 2 Dec 2016 Friday

Dear friends,

Markets consolidated today and stayed weak throughout the day to close 32 points lower. Global cues are all negative with European and US markets down by around 0.5-1.0%.

Indian markets have moved in a range in the last few days with some upward movement and then few days later falling a bit to erase the up-move.

Nifty is still in Don’t Buy zone. As per 30 days moving average graph, the following are the indications for short term –

Don’t Buy – Titan, L&T, HDFC, M&M, Axis Bank, HDFC Bank, Maruti, TCS

Hold – Infosys

Stay patient for short term trades. Do not unnecessarily enter into any short term trades since Nifty and most individual stocks are in don’t buy zone.

If you have picked up leading companies which are performing well in their business, then hold them and do not sell them unless the business itself is doing badly over a period. The stock markets prices keep flucutuating and at times some of the companies prices are much below what they are worth. It does not meant that the company’s value has fallen. It only means that stock market investors are perceiving that the company’s value is a particular figure.

As long as there is a company’s revenues and profits are growing at a good percentage and consistenly going up, stay invested in bluechips without worrying too much about the movement of the stock in the short term.

All the best!

Dr.Bharath Chandra